Elanders : Presentation Q4 2020

YEAR-ENDREPORT | January - December 2020 | 29 January 2021

Elanders today

AMERICAS	EUROPE	ASIA
7	69	18
locations	locations	locations
400	4,900	1,500
employees	employees	employees

• Over 6,000 employees in some 20 countries.
• Annual net sales EUR >1 billion.
• More than 90 locations.

2

Our major customer segments

Our major customer segments' approximate share of total net sales

25%	35%	15%	<5%	15%
Automotive	Electronics	Fashion & Lifestyle	Health Care &	Industrial
			Life Science

3

Operational highlights and financials Q4

4

Fourth quarter 2020

Actual

• Best year and quarter ever!
• Continued strong demand in almost all customer segments. Net sales grew organically by 5.5 percent.
• Lower demand from retail was compensated by higher demand from e-commerce.
• We continue to invest in additional e-commerce business within Fashion & Lifestyle, which is steadily growing. This year a new site will be opened in Oberhausen, Germany, dedicated for e- commerce business.
• Our cost saving program in 2019 improved the margins for Supply Chain Solutions this year.
• Print & Packaging Solutions including the photobook business had a really strong quarter and gained additional market shares.
• This year's strong cash-flow has significantly reduced our leverage. As a result, the Group will benefit from lower interest rates going forward. The stronger financial position also increases the possibility to do more acquisitions.

5

Stronger financial position

NET DEBT / EBITDA ADJ.

OPERATING CASH FLOW (MSEK)

NET GEARING

4,73

3,50

2,96

1,52

2017	2018	2019 excl.	2020 excl.
		IFRS 16	IFRS 16

Comments:

• Rolling 12 months data

1089

746

538

-33

2017	2018	2019 excl.	2020 excl.
		IFRS 16	IFRS 16

1,09
	0,94
		0,74
			0,38
2017	2018	2019 excl.	2020 excl.
		IFRS 16	IFRS 16

• Historic data shows that Elanders normally has a strong cash flow and can handle temporary increases in net debt in connection with acquisitions or larger investments

6

Our business areas

Supply Chain Solutions (excl. one-offitems)

	Oct-Dec	Oct-Dec
Key figures	2020	2019
Net sales, SEK million	2 144	2 199
EBITA adjusted, SEK million	172	92
EBITA margin adjusted, %	8.1	4.2
Share of total net sales	Share of EBITA adjusted
(rolling 12m)	(rolling 12m)

Print & Packaging Solutions (excl. one-offitems)

	Oct-Dec	Oct-Dec
Key figures	2020	2019
Net sales, SEK million	792	737
EBITA adjusted, SEK million	95	86
EBITA margin adjusted, %	12.1	11.6
Share of total net sales	Share of EBITA adjusted
(rolling 12m)	(rolling 12m)

76%	76%	24%	24%
(77%)	(69%)	(23%)	(31%)

7

Sales by customer segments

Automotive

• Our Automotive clients experienced a steady demand and did not close longer than usual during the holidays. Going forward they still have a back-log in the order book.
• There is a risk that lack of electronic components will put some pressure on their manufacturing capacity.

Electronics

• The sales in Electronics increased somewhat compared to Q3 due to seasonality. Sales in Q4 is normally strong. The decrease compared to last year was mainly due to lost buy & sell business.
• We expect the demand to continue to be stable going forward.

8

Sales by customer segments (cont.)

Fashion & Lifestyle

• The volumes in the Fashion & Lifestyle segment were higher than last year due to the growth in the subscription box fulfilment business in the USA. We could also see that the volumes for our e-commerce customers continue to grow.
• We expect the demand for the segment to be stable going forward. However, any new COVID-19 restrictions, e.g. lock- downs, might affect the retail volumes negatively.

Health Care & Life Science

• The one-off business with personal protective equipment for the North and South American market boosted sales in Q2 and Q3. In Q4 the effect on net sales was very small.

9

Sales by customer segments (cont.)

Industrial

• The sales volumes to the customers in the Industrial segment remained stable in the fourth quarter, but the forecast going forward is still a bit uncertain given the ongoing COVID-19 pandemic.

10

Going forward

• After a strong Q3 we followed up with an even stronger Q4. All the actions we have made on the cost-side really paid-off in improved margins.
• We have strengthened our financial position and the Group's cash and cash equivalents together with unutilized credit facilities now amounts to more than SEK 1.7 billion.
• After a strong quarter and a significantly improved financial position we are carefully optimistic going forward. However, the COVID-19 pandemic will continue to make the market conditions uncertain, which we need to be prepared for, and we will continue to focus on generating strong cash flow to be able to handle these challenges.
• The market has started to normalize and we have a lot of requests from both existing and new customers.
• The Swedish Krona is getting stronger, which might put pressure on the result this year, as almost all of our earnings are in euro and US dollars.

11

Questions?

12

KEY FACTS

This is Elanders

Elanders offers a broad range of services and total solutions in supply chain management. The business is run through two business areas, Supply Chain Solutions and Print & Packaging Solutions. The Group has more than 6,000 employees and operates in some 20 countries on four continents. Our most important markets are China, Germany, Singapore, Sweden, the United Kingdom and the USA. Our major customers are active in the areas Automotive, Electronics, Fashion & Lifestyle, Industrial and Health Care & Life Science.

>1 ~20 >90

Net sales, EUR billion

Number of countries, presence

Locations, total

>1,000,000 >6,000

Total m2 of production and warehouse space

Employees, total

13

KEY FACTS

The world of Elanders

14

Our Business Model - The Integrated Offer

CUSTOMERS IN CORE INDUSTRIES

Automotive	Electronics	Fashion &	Health Care &	Industrial
		Lifestyle	Life Science

OPERATIONS

Procurement		Production		Distribution		After-Sales Services		Return Logistics

SERVICES - INTEGRATED SOLUTIONS

	SUPPLY CHAIN	PRINT &	E-COMMERCE	BUSINESS
15		PACKAGING		INNOVATIONS

Our Business Model - Linked to sustainability

CUSTOMERS IN CORE INDUSTRIES

OPERATIONS

SERVICES - INTEGRATED SOLUTIONS

Environment and	Employees	Social conditions	Ethics and
climate		and human rights	anti-corruption

16

Some of our peers / major competitors in this industry

		Kuehne + Nagel		ID Logistics		XPO Logistics		DSV
Country:		Switzerland		France		USA		Denmark
Turnover in equiv.		23,000		1,534		15,000		12,000
MEUR (2019):
No of employees		78,000		21,000		100,000		61 000
(2019):
Description:		A logistics player that is very		An international contract		Active in contract logistics		A logistics company focusing
		strong in Air & Sea freight.		logistics group with a client		and transportation. Contract		on Air & Sea (53%), Road
		25% of the turnover is in		portfolio balanced between		logistics is about 35% of the		transportation (32%) and
		contract logistics.		retail, industry, detail-picking,		revenues. The remainder		Solutions (15%).
				healthcare and e-commerce		(65%) is transportation
				sectors		services including brokerage
Type of company:		Public		Public		Public		Public

17